New Delhi:
Max Financial Services Limited (MFSL) announced that Insurance Regulatory and Development Authority of India (IRDAI) has approved the proposed the share swap transaction facilitating transfer of 39,47,75,831 equity shares constituting 20.57% of the paid-up equity share capital of Max Life Insurance Company (Max Life) held by Mitsui Sumitomo Insurance Company (“MSI”) to MFSL in exchange for issuance of 7,54,58,088 Equity shares of MFSL, constituting 21.87% of issued and paid-up share capital of MFSL
MFSL will now proceed for the implementation of the share swap transaction, which will entail swapping by MSI of its 20.57% stake in Max Life with a 21.87% stake in MFSL by way of issue and allotment of 7,54,58,088 equity shares of Rs. 2/- each at a price of Rs. 565.11 per equity share on a preferential allotment basis.
The share swap transaction will effectively result in MFSL’s stake in Max Life increasing to 93.10%. Presently, MFSL holds a 72.5% stake in Max Life and MSI owns 25.5% stake.
Earlier on November 19, 2020, MFSL had disclosed that it has received approval from Department of Economic Affairs (DEA), Ministry of Finance for the aforesaid transaction and that the transaction will be consummated upon receipt of approval from IRDAI.
Commenting on the development, Mohit Talwar, MD, Max Financial and Vice Chairman, Max Group, said, , “IRDAI’s approval is a very important milestone for the implementation of our Share Swap transaction. We will work to close the transaction as soon as possible.”
MFSL had recently announced that Axis Bank and its subsidiaries, Axis Capital Limited & Axis Securities Limited (together Axis Entities), have entered into agreements with MFSL for acquisition of up to 19% stake in Max Life, in accordance with existing laws and regulations.